Capital adequacy and lending and deposit behaviors of conventional and Islamic banks
Capital adequacy plays an important role in determining banking activities. A bank must hold a minimum level of capital to ensure sufficient funds to buffer against unexpected losses or adverse shocks. This study analyzes and compares Islamic and conventional banks in 14 Organization of Islamic Conf...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Elsevier
2014
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| Online Access: | http://psasir.upm.edu.my/id/eprint/36701/1/Capital%20adequacy%20and%20lending%20and%20deposit%20behaviors%20of%20conventional%20and%20Islamic%20banks.pdf |
| _version_ | 1796972970281795584 |
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| author | Abdul Karim, Mastura Hassan, Mohammad Kabir Chowdury, Taufiq Hassan Shah Mohamad, Shamsher |
| author_facet | Abdul Karim, Mastura Hassan, Mohammad Kabir Chowdury, Taufiq Hassan Shah Mohamad, Shamsher |
| author_sort | Abdul Karim, Mastura |
| collection | UPM |
| description | Capital adequacy plays an important role in determining banking activities. A bank must hold a minimum level of capital to ensure sufficient funds to buffer against unexpected losses or adverse shocks. This study analyzes and compares Islamic and conventional banks in 14 Organization of Islamic Conference (OIC) countries from 1999 to 2009. The empirical evidence suggests that capital requirements have a significant impact on the deposit and lending behaviors of the 52 Islamic banks (IBs) and 186 conventional banks (CBs) in the sample. There is a strong positive relationship between capital requirements and deposit and loan growth for both IBs and CBs. |
| first_indexed | 2024-03-06T08:36:06Z |
| format | Article |
| id | upm.eprints-36701 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T08:36:06Z |
| publishDate | 2014 |
| publisher | Elsevier |
| record_format | dspace |
| spelling | upm.eprints-367012015-08-24T03:07:21Z http://psasir.upm.edu.my/id/eprint/36701/ Capital adequacy and lending and deposit behaviors of conventional and Islamic banks Abdul Karim, Mastura Hassan, Mohammad Kabir Chowdury, Taufiq Hassan Shah Mohamad, Shamsher Capital adequacy plays an important role in determining banking activities. A bank must hold a minimum level of capital to ensure sufficient funds to buffer against unexpected losses or adverse shocks. This study analyzes and compares Islamic and conventional banks in 14 Organization of Islamic Conference (OIC) countries from 1999 to 2009. The empirical evidence suggests that capital requirements have a significant impact on the deposit and lending behaviors of the 52 Islamic banks (IBs) and 186 conventional banks (CBs) in the sample. There is a strong positive relationship between capital requirements and deposit and loan growth for both IBs and CBs. Elsevier 2014-06 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/36701/1/Capital%20adequacy%20and%20lending%20and%20deposit%20behaviors%20of%20conventional%20and%20Islamic%20banks.pdf Abdul Karim, Mastura and Hassan, Mohammad Kabir and Chowdury, Taufiq Hassan Shah and Mohamad, Shamsher (2014) Capital adequacy and lending and deposit behaviors of conventional and Islamic banks. Pacific-Basin Finance Journal, 28. pp. 58-75. ISSN 0927-538X http://www.sciencedirect.com/science/article/pii/S0927538X13000784 10.1016/j.pacfin.2013.11.002 |
| spellingShingle | Abdul Karim, Mastura Hassan, Mohammad Kabir Chowdury, Taufiq Hassan Shah Mohamad, Shamsher Capital adequacy and lending and deposit behaviors of conventional and Islamic banks |
| title | Capital adequacy and lending and deposit behaviors of conventional and Islamic banks |
| title_full | Capital adequacy and lending and deposit behaviors of conventional and Islamic banks |
| title_fullStr | Capital adequacy and lending and deposit behaviors of conventional and Islamic banks |
| title_full_unstemmed | Capital adequacy and lending and deposit behaviors of conventional and Islamic banks |
| title_short | Capital adequacy and lending and deposit behaviors of conventional and Islamic banks |
| title_sort | capital adequacy and lending and deposit behaviors of conventional and islamic banks |
| url | http://psasir.upm.edu.my/id/eprint/36701/1/Capital%20adequacy%20and%20lending%20and%20deposit%20behaviors%20of%20conventional%20and%20Islamic%20banks.pdf |
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